AIG pulls back on premium growth target amid US commercial insurance pressure

AIG has abandoned its earlier target for net premium written growth in the low- to mid-teen percentage range, citing pressure in certain commercial insurance lines. CEO Eric Andersen told analysts that the insurer will not pursue growth at the expense of underwriting standards and risk management. He said some parts of the market, especially large property and casualty accounts, are under pressure from new entrants and excess capacity, particularly in the North American commercial segment.

AIG has grown net premiums written by 11% in the first nine months of the year, but has scaled back its American property book at surplus lines insurer Lexington. The company is now focusing on middle market and SME segments, while reducing its exposure to larger accounts facing the most competition. Losses are rising in reps and warranties and energy lines, with inflation and new capacity affecting pricing and loss costs.

Andersen pointed to data centre construction as a growth area, with AIG insuring projects related to artificial intelligence infrastructure. The company offers a broad multiline proposition for data centres, including cyber, property, and political violence cover through its Talbot subsidiary.

AIG expects growth to pick up in 2026, using its global portfolio to manage performance. Insurers and brokers may need to adjust their strategies in response to shifting market conditions and capacity.